Telkom and the Communication Workers’ Union (CWU) on Wednesday signed a deal on a 7,5% pay rise and a two-year moratorium on forced retrenchments.
This followed a 12-day strike by workers, which was called off on Saturday after a settlement was reached the previous day.
”The parties also agreed to an accelerated process to address salary disparities and that all future increases will be performance based,” Telkom said in a statement.
”On average, this translates to an 11,22% increase for bargaining unit staff and all adjustments are effective from August 1 2009.”
The CWU initially demanded a 13% wage increase and the adjustment of salary grades, but indicated that workers would accept Telkom’s 7,5% offer if salary scales were adjusted before it was implemented and the increase was backdated to April.
”With the support and approval of our board, Telkom has systematically and proactively addressed the matter of salary disparities,” said Telkom group chief executive officer Reuben September.
”We are extremely glad to have reached a negotiated settlement with the representatives of organised labour as Telkom places a high premium on the welfare and satisfaction of all our employees,” he said.
”Despite difficult current economic realities, Telkom has agreed to a two-year moratorium on forced retrenchments, thereby providing certainty and stability both for Telkom and its employees.”
September was satisfied that Telkom and organised labour had used the negotiating process to address critical issues ”in the shortest possible timeframe within the context of group affordability”.
In a separate statement on Saturday, the CWU said its members, through their determination, ”broke the backbone” of Telkom, forcing it to ”make positive adjustments” to salaries. — Sapa